Is keiretsu really a source of competitive advantage for Japanese automotive suppliers?

Purpose - The purpose of this paper is to examine how firms create and sustain competitive advantage in the inter-firm business relationships from a supplier's perspective. It also investigates what factors affect their competitiveness and relationship between buyers and suppliers. Design/methodology/approach - This is an exploratory study on keiretsu partnerships composed of four main phases: analysis of theoretical perspectives, construction of a conceptual framework, interview of a CEO, and finally, a survey questionnaire with Japanese automotive suppliers. Findings - As a result, this paper classified these 11 companies into four supplier groups (affiliated or independent Tier 1 suppliers; affiliated or independent Tier 2 suppliers) and analysed their competitiveness developing the research propositions further. The benefits of affiliation under a keiretsu partnership are discussed, showing that there may be little benefit in being an affiliated Tier 1 supplier. Even more critical, the results show that independent Tier 2 supplier may be more competitive than affiliated tier ones. Originality/value - These intriguing results reveal an urgent need of investigating Japanese automotive supply chains from the suppliers' perspectives in the future research. This paper extended the literatures on competitive advantage and business relationships at both theory and managerial practice.

Practice based learning for automotive engineering design students

The automotive industry combines a multitude of professionals to develop a modern car successfully. Within the design and development teams the collaboration and interface between Engineers and Designers is critical to ensure design intent is communicated and maintained throughout the development process. This study highlights recent industry practice with the emergence of Concept Engineers in design teams at Jaguar Land Rover Automotive group. The role of the Concept Engineer emphasises the importance of the Engineering and Design/Styling interface with the Concept engineer able to interact and understand the challenges and specific languages of each specialist area, hence improving efficiency and communication within the design team. Automotive education tends to approach design from two distinct directions, that of engineering design through BSc courses or a more styling design approach through BA and BDes routes. The educational challenge for both types of course is to develop engineers and stylist's who have greater understanding and experience of each other's specialist perspective of design and development. The study gives examples of two such courses in the UK who are developing programmes to help students widen their understanding of the engineering and design spectrum. Initial results suggest the practical approach has been well received by students and encouraged by industry as they seek graduates with specialist knowledge but also a wider appreciation of their role within the design process.